Peden says the 446sqm corner site attracted a wide range of potential buyers.

"The transaction clearly demonstrates the ongoing appeal of the Melbourne market to Asia-based developers wishing to undertake projects to meet the needs of our rapidly growing population, and the price reflected that," he says.

"A city fringe site with a permit for a 124-apartment development designed by one of Melbourne's best known architectural firms, was always going to generate a lot of interest.

"The fact that the property offered buyers the ability to immediately commence the approved project was the icing on the cake.

"All in all, this was a masterful delivery of a project to the market and both the purchaser and vendors could not be happier."

The sale was finalised on unconditional cash terms and subject to two short-term leases returning $120,000 per annum net.

Baxter says the proposed development capitalises on the high-profile location and proximity to the Melbourne CBD.

"The fact that this location is Melbourne's most successful high-rise residential precinct is very well demonstrated by the multitude of successful projects, many of which benefit from views towards Port Phillip Bay and Melbourne's CBD, as well as close proximity to Melbourne's world renowned sporting and entertainment precincts, parks and gardens," Baxter says.